Teneriffe, populated by trendy Brisbane types with high incomes, was designated a suburb just three years ago by the Brisbane City Council. It was originally considered part of Newstead.

In recent times, it has become a highly sought-after spot in which to live, given it’s about a three-kilometre drive to the CBD.

The first landowner in the area was James Gibbon, who bought 48 hectares between Newstead and New Farm and named the property after Tenerife (inserting an extra ‘f’) in the Canary Islands.

Wool stores were built there during the early 20th century and those buildings have been transformed into desirable apartments. Small boutiques dot the streets but with no major retail infrastructure around, the nearest places to shop are in the surrounding suburbs and in town.

One Macquarie is among the more luxurious residential complexes in Teneriffe. It comprises 34 apartments and a handful are now on the market, including unit 3. This three-bedroom, two-bathroom apartment on the first floor is being offered for more than $2.5 million.

Place Estate Agents New Farm sales associate Matthew Foote says during recent open house inspections, middle-aged owner occupiers were the people who showed most interest in the property.

“We’ve attracted some young professionals as well," he says. “But the main market are the baby boomers whose kids have left home and are looking to downsize.

“It’s a new suburb that’s emerged between Newstead and New Farm and it has a lot of really nice little restaurants.

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“It’s highly sought after because it’s so close to the CBD. The prices we’re achieving are at the higher end."

The riverfront along Macquarie Street in Teneriffe also features some impressive houses. Number 51 in Macquarie Street is a four-bedroom house being pitched by agency Teneriffe Realty to wealthy families looking for upscale living, with an asking price of more than $4 million.

According to Teneriffe Realty, Brisbane’s inner north peninsula (which includes New Farm, Teneriffe and Newstead) has become one of the city’s fastest growing development corridors and a number of new apartment projects are on the boil in the popular location.

ASX-listed property group Devine Limited recently announced it would start work on the $58 million, 111-apartment DoubleOne3 project this month. Getting off to a good start, it had already booked off-the-plan sales worth more than $37 million at the time of the announcement.

Now 70 per cent sold, the group has pushed construction forward and expects it to be complete by May 2014.

Devine’s general manager of apartments and development, Cameron Mana, says starting the project ahead of schedule endorses “the appeal of the Teneriffe area".

The prices at DoubleOne3 are more accessible than those along Macquarie Street, with one-bedroom apartments starting from $375,000 and those with two bedrooms and two bathrooms starting from $580,000.

Hastings Street Developments is building the Macquarie Street Residences on the upper level of a heritage-listed wool store.

The nine apartments – seven with two storeys and two with three storeys – will look out over the Brisbane River and city skyline.

Wool stores, an integral part of Teneriffe’s architectural fabric, are highly sought after as places to live. An apartment at Carson Wool stores at 54 Vernon Terrace, with three bedrooms and large open-plan dining and living areas is expected to fetch $1.65 million.